26 Companies Launch Consortium To Promote Responsible Use Of Personalization Technology

Market Wire, 20050229

At a press conference today at the Spring Internet World conference, 26 companies announced that they have formed an international advocacy group to promote the responsible and beneficial use of technology for personalizing consumer and business relationships. The Personalization Consortium will provide a forum for discussion of personalization technology and will develop guidelines for its application to marketing practices that respect consumer privacy. Personalization technology applies consumer buying trends and individual customer data to tailor the content of Web retail sites, advertisements and promotions for each customer or site visitor. With this technology, retailers can provide better service to customers and more accurately predict customer needs, while more precisely and cost-effectively targeting their own marketing efforts.

Based in Massachusetts, the Personalization Consortium will address the development of standard industry practices, sponsor research, educate the public about personalized marketing, and work with other advocacy groups to formulate and ensure the responsible use of personalization technology. The consortium today released the results of its first project, a survey of more than 4,500 Web users about consumer attitudes regarding online privacy and retailers' use of customer information on the Internet. The survey found that privacy issues are important to consumers but do not outweigh convenience (see companion press release).

The consortium has drafted initial objectives for ethical information and privacy management, which include the following guidelines for evolving personalization technology: Fair access by individuals to their personal information Responsible linkage of online and off- line information Redress provisions for individuals to change information Criteria for "opt-in" and "opt-out" privacy optionsTemplates to standardize the disclosure of consortium members' privacy policies to consumers.

The consortium has also proposed a four-point privacy monitoring and assurance program for members that exceeds the limitations of existing early stage self-regulatory efforts: Free distribution of a self-assessment mechanism for members to gauge the degree of consumer protection and compliance with stated privacy practices and policies Independent verification/audit of members' privacy and security policiesMechanism for resolving disputes by a trusted third party Education and awareness program for members and the public.

The 26 founding members of the Personalization Consortium include American Airlines (NYSE: AMR), BroadVision (NASDAQ: BVSN), Chell.com, DoubleClick (NASDAQ: DCLK), eCustomers.com, Elity Systems, E.piphany (NASDAQ: EPNY), eSupplies.com, Exactis.com (NASDAQ: XACT), Frequency Marketing, !hey software, I-Behavior, icontact, Individualize.com, KPMG Consulting, Magnify, Nexgenix, NextClick, Peppers and Rogers Group, PricewaterhouseCoopers, PrivaSeek, Servicesoft, SneakerLabs, u1.net, Wheelhouse and Younology.

Representatives from the founding member companies held their first face-to-face organizational meeting in March. Elected officers are: Don Peppers and Martha Rogers, PhD., of Peppers and Rogers Group, Co-Chairs and spokespersons for the group; Scott Martin of NextClick, President; Marc Fienberg of Magnify, Vice President; Bonnie Lowell of Younology, Chief Technology Officer; and Gayle Crowell of E.piphany, Secretary-Treasurer. Representatives of the consortium founders hold seats on the Personalization Consortium, Inc. Board of Directors.

Companies interested in furthering awareness and growth of the personalization industry and in shaping its direction, that can also demonstrate a commitment to privacy assurance, are invited to join the Personalization Consortium. There are two levels of consortium participation Executive and Associate membership with corresponding annual dues and privileges. Membership information and other material about the Personalization Consortium is available at www.personalization.org, by calling the consortium at 781-245-4280, or sending email to info@personalization.org.

About the Personalization Consortium

Founded in April 2000, the Personalization Consortium is an advocacy group of companies formed to promote the responsible and beneficial use of technology for personalizing consumer and business relationships. Founding members include American Airlines (NYSE: AMR), BroadVision (NASDAQ: BVSN), Chell.com, DoubleClick (NASDAQ: DCLK), eCustomers.com, Elity Systems, E.piphany (NASDAQ: EPNY), eSupplies.com, Exactis.com (NASDAQ: XACT), Frequency Marketing, !hey software, I-Behavior, icontact, Individualize.com, KPMG, Magnify, Nexgenix, NextClick, Peppers and Rogers Group, PricewaterhouseCoopers, PrivaSeek, Servicesoft, SneakerLabs, u1.Net, Wheelhouse and Younology. Information on the Personalization Consortium is available on the World Wide Web at www.personalization.org; by contacting consortium headquarters at 401 Edgewater Place, Suite 500, Wakefield, Mass. 01880; Tel: 781-245-4280; or by sending email to info@personalization.org.